Q&As

Is it possible to make an appointment out of a discretionary Will trust to a deceased beneficiary (who died after the testator) in order to claim the ‘reading back’ for inheritance tax purposes under section 144 of the Inheritance Tax Act 1984?

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Published on LexisPSL on 09/01/2020

The following Private Client Q&A provides comprehensive and up to date legal information covering:

  • Is it possible to make an appointment out of a discretionary Will trust to a deceased beneficiary (who died after the testator) in order to claim the ‘reading back’ for inheritance tax purposes under section 144 of the Inheritance Tax Act 1984?

Is it possible to make an appointment out of a discretionary Will trust to a deceased beneficiary (who died after the testator) in order to claim the ‘reading back’ for inheritance tax purposes under section 144 of the Inheritance Tax Act 1984?

This Q&A assumes that the Will contains no provisions as to post-death appointments from the Will trust and no survivorship provisions. It also assumed that the deceased beneficiary died within a short time of the testator such that the two year period specified in section 144 of the Inheritance Tax Act 1984 (IHTA 1984) is still open.

Where there is no power in the Will for an appointment to be made to the deceased beneficiary’s estate, such an appointment is not likely to be valid as the deceased beneficiary would have ceased to be in the class of beneficiaries by the date of the appointment.

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